Commercial or Corporate Cards Market By Product Type (Business Cards, Purchase Cards, Gift Cards, and Travel & Entertainment Cards), By Card Type (Closed-loop Cards and Open-loop Cards), By Application (Large Enterprises and Small & Medium-sized Enterprises), and By Region- Trends, Analysis and Forecast till 2034

Report Code: PMI97819 | Publish Date: May 2024 | No. of Pages: 180

Global Commercial Or Corporate Cards Overview

Commercial or Corporate Cards Market was valued at USD 23.8 Billion in 2024 and is projected to grow at a CAGR of 8.8% to reach USD 51.1 Billion by 2034.

A commercial or corporate card is issued by a company to workers for use in business transactions. The proprietors of the firm, not the individual cardholders, are responsible for paying back the outstanding sum on the cards. The conditions specified by the supplier of their credit card, which include an annual revenue threshold, a minimum expenditure amount, and a verified financial track record, must be met by corporate credit card customers, which are often significant businesses, including companies. There may be a business credit card that works for smaller businesses even if they don't meet the requirements for a corporate credit card.

Globally, people's rising tendency toward digitization in both developed and developing nations is an essential factor propelling the expansion of the commercial or corporate cards market. Throughout the forecast period, an increase in business travel expenses is another important element anticipated to fuel the worldwide market's expansion. The global market is expanding as a result of consumers' growing preference for electronic payment methods because of their many benefits, which include rapid money transfer, no need to carry cash, and a highly secure method of conducting business. The worldwide market is expanding due to several causes, including greater knowledge among working people and an increase in online transaction alternatives for different kinds of payment procedures globally. Nonetheless, one of the main obstacles impeding the expansion of the worldwide industry is the existence of online banking apps. Furthermore, spending limits on cards and limitations on some cards for particular transactions are two significant factors that are anticipated to impede the expansion of the worldwide market throughout the forecast period.

The commercial and corporate card sector has bright prospects. The use of commercial cards by enterprises worldwide is being driven by the fast digitalization of financial services and technological improvements. These cards are becoming more and more common since they manage payments and costs with ease, effectiveness, and increased security.

Commercial or Corporate Cards Market Share

Global Commercial Or Corporate Cards Drivers & Restraints

Commercial or Corporate Cards Market Drivers:

Provide enhanced security services

  • Security is a top priority for corporate cards, which considerably lowers the usage of fraudulent cards when compared to more conventional approaches like cash or personal credit cards. By use of Chip-and-PIN Technology, which creates a distinct code for every transaction, an implanted microchip in the card allows for multi-layered security. Because every purchase requires cardholder authentication, the PIN adds an extra degree of protection. Issuers utilize advanced real-time transaction monitoring technologies to identify potentially suspicious conduct.
  • The merchant location, the purchase amount, the time of day, and the cardholder's usual spending tendencies are just a few of the variables that these algorithms examine while analyzing a transaction. Additionally, many business cards have accounting software integration built-in, making automatic spending reconciliation and classification possible. By doing this, businesses may save a substantial amount of time and money that would have been used for manual data entry and reconciliation. These elements give cardholders a safe and efficient way to use their card while also successfully addressing their main security concerns. 

Rising e-commerce sector

  • Business cards with advanced safety features that allow safe transactions are in high demand due to the growth of e-commerce. This eliminates the requirement for a company credit card or the necessity for workers to use their own money to make business transactions online.
  • Virtual cards give businesses an additional degree of protection and control over their online spending when they are used for particular online purchases. Due to their transitory nature, virtual cards reduce the possibility of illegal use in the unlikely event that the card information is ever hacked. Virtual cards are temporary card numbers created for a single transaction.

Commercial or Corporate Cards Market Restraints:

Rising banking apps and online payment platforms

  • For some corporate payment types, banking applications and online payment platforms provide a substantial challenge since they provide a more practical and potentially less expensive option. A greater number of people use online platforms over cards since corporate cards are expensive for companies, particularly large ones. A more affordable solution would be using an online payment platform, which may provide fee-free or reduced transaction costs for specific payment kinds.
  • Moreover, a lot of online payment systems interact with enterprise resource planning (ERP) and accounting programs that are already in use. Compared to standard corporate card systems that could have additional integration efforts, this simpler interface can save time and money for expenditure management. Hence, the presence of alternatives like net banking and online payments is significantly impeding the market for commercial or corporate cards.

Global Commercial Or Corporate Cards Segmentations & Regional Insights

Commercial or Corporate Cards Market is segmented based on Product Type, Card Type, Application, and region:

Product Type Insights:

  • Business Cards:

With a business credit card, owners or authorized staff may pay for various business expenses, such as travel, office supplies, utility bills, and even eating out. Additionally, these cards typically come with benefits like cash back or point accumulation for particular transactions.

  • Purchase Cards:

A purchasing card, often known as a P-Card, is a kind of company credit card that enables businesses to use the current credit card network to electronically pay for a range of costs (goods and services).

  • Gift Cards:

In a company setting, gift cards may be used for several things, such as channel partner programs, staff awards, and consumer incentives. They can be open-loop (used at different merchants) or closed-loop (useful exclusively within a certain firm or for a defined purpose).

  • Travel & Entertainment Cards:

Travel and Entertainment Cards (T&E Cards) offer specialized features for managing corporate travel and entertainment expenses. Travel insurance, integrated spending monitoring systems, access to airport lounges, and exemptions to foreign transaction fees are examples of common features. Depending on the card program and issuer, T&E cards may also come with perks like priority check-in, luggage handling, and hotel room upgrades.

Among the segments mentioned above the one that dominated the market is the Purchase Cards segment as it simplifies the procure-to-pay process and helps organizations buy goods and services more quickly, cut transaction costs, track spending, take advantage of supplier discounts, reallocate or reduce staff in the purchasing and accounts payable departments, reduce or eliminate unnecessary cash, and other benefits,

Card Type Insights:

  • Closed-loop Cards:

These cards are provided by a particular firm or group and are only intended for usage inside their ecosystem or with a predetermined group of merchants. They restrict the freedom of purchases yet provide the strictest control over spending.

  • Open-loop Cards:

Open-loop Cards operate like that of conventional credit cards, enabling purchases at a vast network of retailers connected to the card network (such as Visa and Mastercard). Due to the possibility of abuse, this widespread acceptance offers unparalleled flexibility for corporate purposes, but it also raises the bar for cardholder confidence.

Among the segments mentioned above, the segment that dominated the market is the Open-loop Cards segment which provides unparalleled acceptance at millions of merchants globally, enhancing their suitability for a wide range of commercial applications.

Application Insights:

  • Large Enterprises:

Large Enterprises require strategic use of many card kinds to efficiently control expenses across various categories. They may use purchase cards for certain departments or often purchased things (such as marketing materials or IT equipment), business cards for basic office supplies and recurring spending, and T&E cards to simplify the monitoring of travel and entertainment expenses.

  • Small & Medium-sized Enterprises:

Compared to large enterprises, small and medium-sized enterprises (SMEs) usually have simpler cost structures. They still gain by setting up a business card program, though, as it makes payments easier, increases insight into expenses, and could even earn incentives. Due to their adaptability for a range of expenditures, business cards are a perfect match for many SME spending requirements.

Among the segments mentioned above the one that dominated the market is the Large Enterprises segment owing to a surge in the use of commercial cards throughout the country. For optimal monitoring and reporting, large enterprises may have complex spending structures that need a mix of card kinds.

Regional Insights:

Commercial or Corporate Cards Market Regional Insights

  • North America market is estimated to witness a significantly high revenue share over the forecast period, because of the region's early adoption of new technologies and the growing trend of digitalization, both of which are key drivers of market development.
  • The Asia Pacific market is estimated to witness the largest revenue share because of the growing expenditure on business travel in the Asia Pacific region, which is expected to account for the greatest revenue share in the industry. Furthermore, about half of all business travel expenditures worldwide in recent years have come from Asia Pacific.
  • Europe market finds lucrative market opportunities Because of the robust presence of card networks and reputable banking institutions. Innovation and security in the Commercial or Corporate Cards market are being driven by regulations such as PSD2 (Payment Services Directive 2) in the region.
  • Latin America market is increasing gradually as a result of the growing urbanization and increasing disposable incomes, economic development, and rising initiatives taken by the companies to incentivize their employees with card benefits.
  • Middle East & Africa market an emerging market as a result of investment in financial infrastructure, expanding internet penetration, and the rising acceptance of digital payment options like mobile wallets.

Commercial or Corporate Cards Market Report Scope:

Attribute

Details

Market Size 2024

US$ 23.8 billion.

Projected Market Size 2034

US$ 51.1 billion

CAGR Growth Rate

8.8%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Market Segmentation

By Product Type - Business Cards, Purchase Cards, Gift Cards, and Travel & Entertainment Cards.

By Card Type - Closed-loop Cards and Open-loop Cards.

By Application - Large Enterprises and Small & Medium-sized Enterprises.

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the Commercial or Corporate Cards Market report based on Product Type, Card Type, Application, and region:

Commercial or Corporate Cards Market, By Product Type:

  • Business Cards
  • Purchase Cards
  • Gift Cards
  • Travel & Entertainment Cards

Commercial or Corporate Cards Market, By Card Type:

  • Closed-loop Cards
  • Open-loop Cards

Commercial or Corporate Cards Market, By Application:

  • Large Enterprises
  • Small & Medium-sized Enterprises

Commercial or Corporate Cards Market, By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Global Commercial Or Corporate Cards Competitive Landscape & Key Players

The key players operating the Commercial or Corporate Cards Market include American Express Company, AirPlus International, Ltd., Amazon.com, Inc., Bank of America Corporation, Union Pay International Co., Ltd., Citigroup Inc., Corpay, Inc., JCB Co., Ltd, JPMorgan Chase & Co., MasterCard, PayPal Holdings, Inc., Universal Air Travel Plan Inc., Visa Inc., and WEX Inc.

Commercial or Corporate Cards Market Key Players

Global Commercial Or Corporate Cards Recent News

  • In March 2024, Hilton and American Express unveiled the upgraded Hilton Honors American Express Business Card, which comes with additional perks, a streamlined rewards program that lets cardholders earn Hilton Honors Bonus Points everywhere they spend, and annual statement credits of up to $240 on qualifying Hilton purchases. With the strong support of American Express, the revised Card enables Card Members to use their business expenditures as fuel for more Hilton stays.

Global Commercial Or Corporate Cards Company Profile

  • American Express Company
  • AirPlus International, Ltd.
  • Amazon.com, Inc.
  • Bank of America Corporation
  • Union Pay International Co., Ltd.
  • Citigroup Inc.
  • Corpay, Inc.
  • JCB Co., Ltd
  • JPMorgan Chase & Co.
  • MasterCard
  • PayPal Holdings, Inc.
  • Universal Air Travel Plan Inc.
  • Visa Inc.
  • WEX Inc.

FAQs

Commercial or Corporate Cards Market accounted for US$ 23.8 billion in 2024 and is estimated to be US$ 51.1 billion by 2034 and is anticipated to register a CAGR of 8.8%.

Commercial or Corporate Cards Market is segmented into on the basis of Product Type, Card Type and Application.

Factors driving the Commercial or Corporate Cards Market include provide enhanced security services and rising e-commerce sector.

The restraints of the Commercial or Corporate Cards Market include rising banking apps and online payment platforms.

By region, the target market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America market is estimated to witness a significantly high revenue share over the forecast period.

The key players operating the target market includes, American Express Company, AirPlus International, Ltd., Amazon.com, Inc., Bank of America Corporation, Union Pay International Co., Ltd., Citigroup Inc., Corpay, Inc., JCB Co., Ltd, JPMorgan Chase & Co., MasterCard, PayPal Holdings, Inc., Universal Air Travel Plan Inc., Visa Inc., and WEX Inc.